There are a handful of housing markets across the Midwest and the Sun Belt that have more available inventory, partly due to a boost in new construction, giving buyers more choices and negotiating power.
Taking the top spot on Zillow’s list of the metros with the most buyer-friendly housing conditions in 2026 is Indianapolis. The Indiana capital was ranked No. 1 among 50 metros analyzed by Zillow. Atlanta, Charlotte, Jacksonville and Oklahoma City rounded out the top five most buyer-friendly housing markets.
Zillow’s 2026 outlook projected that the housing market will settle into a healthier state, with buyers seeing a bit more breathing room.
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Still, the market hasn’t improved across the nation as the inventory crunch in certain regions has pushed up competition among buyers. The high home prices and borrowing costs still continue to sideline a majority of buyers.
Buyers in the aforementioned markets, however, can expect to see more homes within budget, according to Zillow. That, coupled with the projected appreciation, suggests strong long-term financial potential.
These markets also don’t have as much competition, which gives buyers more time to make decisions. There is also a lower risk of being pulled into stressful bidding wars.
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Housing markets in the Midwest, for instance, mainly avoided the steepest pandemic-era price run-ups. This helped maintain their relative affordability. In the Sun Belt, new construction helped boost inventory and ease competition for each home.
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In half of the markets, the typical household can afford the average home without being stretched financially, with the monthly mortgage payments taking up less than 30% of income. That is assuming buyers had a 20% down payment.
Still, Zillow warned that buyers may still need to compromise on size, location or features.
Here are the top most buyer-friendly markets of 2026:
- Indianapolis
- Atlanta
- Charlotte
- Jacksonville
- Oklahoma City
- Memphis
- Detroit
- Miami
- Tampa
- Pittsburgh
